it's all about IT.......

PORTER'S FIVE FORCES MODEL.......

it is useful tool to aid organization in challenging decision whether to join a new industry or industry segment....one of porter's 5 forces model is : 

1- buyer power - it is high when buyers have many choices of whom to buy and low when choices are few...an organization must make the product or services more attractive in order to reduce the buyer power and create competitive advantage....for example, rewards on free airline tickets or hotel stays....it will lows when comes to limited items....customers also can grow large and powerful as a result of their market share....

2- supplier power - it will high when buyers have a few choices of whom to buy from and low when their choices are many...for example, B2B(business to business) marketplace....private exchange allow a single buyer to posts it needs and then open the bidding to any supplier who would care to bid....supplier power is the converse of buyer power....

3- threat of substitute products & services - will high when there are many alternatives to a product or service and low when there are few alternatives from which to choose...to the extent that customers can use different products to fulfill the same need, the threat of substitute exists...for example, samsung and apple have a same function but different brands...switching costs can make customer reluctant to switch to another product@service...

4- threat of new entrants - high when it easy for new entrants to enter a market and low when there are significant entry barriers to entering a market...entry barriers is a product or service feature that customers have come to expect from organizations and must be offered by entering organization to compete and survive.....ti is top management to monitor the trends, especially in technology, that might give rise to new competitors...for example, new bank offers that paying the bills by online....

5- rivalry among existence competitors - high when competition is fierce in a market and low when competition is more complacent....an organization would reduce cost by using effective supply chain in IT....existing competitors  are not much of the threat but typically each firm has found its 'niche'...for example, airlines industry faces serious threats from airlines operating in bankruptcy, who do not pay the debts.....

so......sampai di sini saje lah explanation tentang porter's 5 forces model...daaaaaa